The 48 reports from 14 analysts offering long term price targets
for Petronet LNG Ltd. have an average target of 315.42. The consensus estimate
represents an upside of 43.86%
from the last price of 219.25.
Higher volumes were clocked in FY20, due to higher efficiency in operations and expansion of nameplate capacity at Dahej. Last few days of March '20, was affected due to nationwide lockdown, however normal volumes have bounced back and the Dahej terminal is running at a capacity utilization of close to 100% with industries starting up and higher usage of gas from Power and other industries as spot LNG prices are low. Capacity Utilization at Kochi is low and is expected to improve after the completion of the KochiMangalore pipeline by end of August'20. The capacity utilization of Kochi terminal after completion will reach around 30-35%, which will further boost...
Kochi utilization to improve on new pipeline commissioning: PLNG's Kochi terminal is expected to see higher capacity utilization post completion of Kochi-Mangalore pipeline. The pipeline is expected to be commissioned in August. This will help increase utilization, going forward. We expect Kochi terminal capacity utilization level could reach to 30-35% in FY22E from current ~17%. We expect PLNG...
Petronet LNG (PLNG) reported better-than-expected Q1FY2021 results as the decline of 11% y-o-y in its operating profit to Rs. 910 crore was much lower than our and street expectations of 20-22% y-o-y decline. It is attributable to higher-than-expected Dahej re-gas volume at 181 tbtu (versus estimate of 168 tbtu) and lower other expenses (29% y-o-y). Other expenses were lower as variable cost (such as power and fuel and repairs) declined with lower overall volumes. We highlight here that Q4FY2020 operating profit was impacted by Rs. 31 crore for inventory loss and Rs. 178 crore for forex losses. Kochi terminal volume at 9 TBTU (flat y-o-y; down 31% q-o-q) was in-line...
HG Infra: HG Infra reported revenue at Rs 3bn (7% miss). However, APAT was nearly 3x our estimate on better than expected EBITDA margin and lower interest expense. Labour availability has improved to 85% of the required labour force. While HG did not secure any orders during the quarter, it aims to win Rs 30-40bn during FY21. Order backlog is robust at Rs 68bn (3.1x FY20 revenue). Standalone net debt increased to Rs 2.7bn from Rs 2.5bn on Mar-20 as working capital nearly doubled to Rs 1.4bn from Rs 0.7bn on Mar-20. Realization of receivables from Rajasthan project key for reduction in debt. We maintain BUY on HG with a SOTP based target price of Rs 337/sh, valuing the EPC business at 10x FY22E EPS. Key risks: (1) slowdown in NHAI ordering and (2) delays in receipt of pending dues from the Rajasthan project. Petronet LNG: Our BUY recommendation on PLNG with a price target of INR 291 is premised on robust volume offtake in FY21/22E as (1) benign LNG prices will ensure high LNG imports, in turn allowing full utilisation at Dahej on its expanded capacity, (2) completion of the Kochi-Mangalore pipeline by 2HFY21 would subsequently raise utilisation at the Kochi terminal, and (3) healthy free cash flows of INR67bn over FY21E and FY22E cumulatively. 1Q EBITDA was 44% above estimates, led by an 18% beat on total volumes
Focus on Kochi ramp up and big leap LNG retailing We retain BUY with our DCF-based target price (TP) of Rs316 (up a tad) on (i) attractive risk-reward at 12.2x PE on FY22E (ii) prospects for ramp-up in Kochi from 2HFY21 based on likely completion of the Kochi-Mangalore pipeline by end-August as per PLNG guidance (iii) The management's big leap in B-B LNG business as auto fuel in partnership with CGD entities/OMCs, pending details on pricing/margins. We are tweaking FY21E/FY22E on increased Kochi regas margin assumptions and 5% annual escalation as per the management guidance. During the concall, the management said that it is in confidential...
Lowest tariffs, excellent pipeline network and well-entrenched reach in domestic LNG markets to help PLNG compete with new terminals. We leave our estimates for FY21-23E unchanged. Petronet LNG (PLNG) is a play on India's rising LNG imports supported by soft spot LNG prices. We like PLNG's business model given high earnings visibility. We see limited competition to PLNG's well-entrenched reach in the LNG business. Reiterate...
Petronet LNG provides comfort on the business model and remains a structural story on India's increasing gas demand. With India continuing to be short of natural gas supply, Petronet LNG will benefit as the primary play on increasing usage of LNG. While volumes were impacted during the lockdown, currently Dahej terminal is operating at full capacity. On the new project front, the management indicated the company is planning to set up an import terminal on the east coast. Also, Petronet's deal with Tellurian to buy a stake and import LNG is under negotiation. At the CMP, Petronet LNG...
Petronet LNG's (PLNG) Q1FY20 EBITDA was in line at Rs 9bn (11% YoY), with low volumes (16% YoY) being compensated by higher EBITDA/ mmbtu at Rs 48 (+5.7% YoY).
PLNG has received positive responses for its LT commitment of gas off-take (~1mmtpa) linked to spot prices; the companys board is deliberating on this, and a decision is expected within the next five to six months. PLNG is considering to set up an LNG terminal in Gopalpur (Odisha), connected to the JagdishpurHaldiaBokaroDhamra Pipeline (JHBDPL ~100km away); this would be the biggest beneficiary of new-age CGD gas demand in eastern India. This LNG project would strategically place PLNG (providing access to the westernsouthern eastern coasts), aiding the benefit of gas swapping as the CGD network expands in the country. The feasibility study for the project is complete, and the company is currently in the process of determining whether to set up a land-based terminal or floating (FSRU) terminal; the decision is expected in another three to four months.
The expected improvements in utilization along with expansion plans should support future growth. We reiterate our BUY rating on the stock with a TP of Rs. 321 based on 15x FY22E adj. EPS. Revenue inches up albeit demand remains weak In Q4FY20, revenue rose 2.2% YoY to Rs. 8,567cr on higher LNG volumes processed to 219 TBTUs (+6.8% YoY), with increased throughput from Dahej terminal which processed 206 TBTUs LNG (+3.5% YoY, -7.2%QoQ). On sequential basis, throughput was subdued, owing to COVID-19 which impacted by both supply side (disrupted...
nationwide lockdown was announced in the last 10 days of March, which lead to a slump in demand of gas. Operating profit was below our estimates, due to higher other expenses as they moved to IndAs which included lease impact and forex impact as rupee depreciated by Rs. 4 in Q4FY20. The overall volumes were 219 TBTU in Q4FY20. Volume at Dahej was 206 TBTU, and Kochi volumes and capacity utilization remained low. Given gradual capacity addition and increase in re-gasification margins,...
Petronet LNG (PLNG) Q4FY20 result was a miss at EBTDA level due to higher other expenses. The company's revenue increased 2% YoY to Rs85.7 bn on the back of higher volume. Total volume increased 7% YoY (-6% QoQ) to 219tbtu led by 4% increase in Dahej volume and 87% increase in Kochi volume. Kochi-Mangalore pipeline is expected to complete by Jul'2020 which is likely to increase Kochi's utilisation to 30%-35%. The company's utilisation level at Dahej reached to 100% in June'2020 after seeing some disruption in Apr (upto 60% utilisation) and May'2020. We forecast Dahej/Kochi volume to reach to 17.8/1.8mmt in FY22 from 17.2/0.8mmt in FY20. We expect PLNG to get stiff...
Kochi prospects offset miss on reported PAT Petronet LNG's 4QFY20 PAT at Rs3.73bn was a 28.9% miss vs. NBIE estimate, which includes forex loss of Rs1.78bn booked in other expenses. Revenue is up 11.2% while gross margin is up 4% vs. NBIE estimates. We are cutting FY21E by 12.8% and retain BUY with our trimmed DCF-based target price (TP) of Rs312 on (i) attractive risk-reward at 11.75x PE on FY22E (ii) prospects for ramp-up in Kochi from 2HFY21 based on the planned completion of the Kochi-Mangalore pipeline by 2QFY21 and (iii) potential growth in B-B LNG business as auto fuel in partnership with CGD entities/OMCs, pending details on...
Petronet LNG's total volumes were above our estimates, mainly on account of contracted long term LNG sales and Dahej spot sales. Total sales volumes came in at 219 tbtu vs. 205.1 tbtu in Q4FY19 (up 6.8% YoY) and 233 tbtu in Q3FY20 (down 6% QoQ). Regasification volumes were in line with our estimates at 105 tbtu. Capacity utilisation at the Dahej terminal was at ~85% while capacity utilisation for Kochi terminal was at ~20%. In April, during the lockdown period, Dahej utilisation was lower at 50-55%. It picked up in May and is currently at ~100%. Subsequently, we estimate 881.9 tbtu and...
Our TP is INR 280 based on Sep-21E cash flows (WACC 10%, Terminal growth rate 3.0%). The stock is trading at 12.0x FY22 EPS. Our ADD recommendation on PLNG with a TP of INR 280 is premised on a robust volumes offtake in 2HFY21 and FY22E as (1) Benign LNG prices will ensure high LNG imports, in turn allowing full utilisation at Dahej on its expanded capacity, and (2) Completion of Kochi-Mangalore pipeline by Jul-20, which will subsequently raise utilisation at Kochi.
